PPO: Profit Optimization of IT Projects
IT projects do only marginally differentiate in commercial conduct from other technical system or contracting business. Contracts are awarded under sharp competitive conditions at low calculatory margins. The customer believes to have made a great bargain and the contractor hopes to recover by means of favourable change requests.
But too seperated technical and commercial leadership during conduct leads mostly to frustration on both sides. Dissatisfaction emerges typically from acceptance test, payment goals, over-/under uitilization, contribution duties, delays and from opportunity costs caused by late availability of solutions or by critical resources being longer tight up in this engagement.
Only a coherent technical and commercial conduct in sales, tendering, proposal, negotiation, steering, change management and acceptance by a leading claim and contract management practice leads to professional collaboration between both parties. This leads to the quality of mutual success which is a critical basis for sustainable partnership. This is also why we often use the phrase 'entitlement' for 'claims' to express the need of traceability and justification.
PPO (Project Profit Optimization) by dewey & partner is a well established and tested methodology and an efficient proceeding for self-funded professionalization for the commercial conduct of complex system projects. Based on the analysis of a chosen contract backlog, not only the weaknesses of the organization are identified in comparison to professional practices but also the levers for direct profit improvement action. The realization of these levers again finance the enablement of the organization and effectively support the start of implementation by ideal use cases.